Long-Term Care, Altruism and Socialization
AbstractThe public provision of long-term care (LTC) can replace family-provided LTC when adults are not sufficiently altruistic towards their elderly parents. But State intervention can also modify the transmission of values and reduce the long-run prevalence of family altruism in the population. That evolutionary effect questions the desirability of the LTC public provision. To characterize the optimal LTC policy, we develop a three-period OLG model where the population is divided into altruistic and non-altruistic agents, and where the transmission of (non) altruism takes place through a socialization process à la Bisin and Verdier (2001). The optimal short-run and long-run LTC policies are shown to differ, to an extent varying with the particular socialization mechanism at work.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series PSE Working Papers with number halshs-00622385.
Date of creation: Sep 2011
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00622385
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
long-term care ; altruism ; socialization ; optimal policy ; crowding out effect;
Other versions of this item:
- NEP-AGE-2011-09-22 (Economics of Ageing)
- NEP-ALL-2011-09-22 (All new papers)
- NEP-CBE-2011-09-22 (Cognitive & Behavioural Economics)
- NEP-DGE-2011-09-22 (Dynamic General Equilibrium)
- NEP-HEA-2011-09-22 (Health Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pierre Pestieau & Grégory Ponthière, 2010.
"Long term care insurance puzzle,"
PSE Working Papers
- Jeffrey R. Brown & Amy Finkelstein, 2008.
"The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market,"
American Economic Review,
American Economic Association, vol. 98(3), pages 1083-1102, June.
- Jeffrey R. Brown & Amy Finkelstein, 2004. "The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market," NBER Working Papers 10989, National Bureau of Economic Research, Inc.
- Sloan, Frank A & Norton, Edward C, 1997. "Adverse Selection, Bequests, Crowding Out, and Private Demand for Insurance: Evidence from the Long-Term Care Insurance Market," Journal of Risk and Uncertainty, Springer, vol. 15(3), pages 201-19, December.
- Pierre Pestieau & Motohiro Sato, 2008.
"Long-Term Care: the State, the Market and the Family,"
London School of Economics and Political Science, vol. 75(299), pages 435-454, 08.
- PESTIEAU, Pierre & SATO, Motohiro, . "Long-term care: the state, the market and the family," CORE Discussion Papers RP -2150, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- PESTIEAU, Pierre & SATO, Motohiro, 2004. "Long term care: the state, the market and the family," CORE Discussion Papers 2004082, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Sloan, Frank A & Picone, Gabriel & Hoerger, Thomas J, 1997.
"The Supply of Children's Time to Disabled Elderly Parents,"
Western Economic Association International, vol. 35(2), pages 295-308, April.
- Sloan, Frank & Gabriel Picone & Thomas J. Hoerger, 1995. "The Supply of Children's Time to Disabled Elderly Parents," Working Papers 95-46, Duke University, Department of Economics.
- Javier Olivera, 2013. "Old-age Support and Demographic Transition in Developing Countries. A Cultural Transmission Model," Working Papers 201307, Geary Institute, University College Dublin.
- Gregory Ponthiere, 2010.
"Unequal Longevities and Lifestyles Transmission,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 12(1), pages 93-126, 02.
- Hoerger, Thomas J & Picone, Gabriel A & Sloan, Frank A, 1996.
"Public Subsidies, Private Provision of Care and Living Arrangements of the Elderly,"
The Review of Economics and Statistics,
MIT Press, vol. 78(3), pages 428-40, August.
- Hoerger, Thomas J. & Picone, Gabriel & Sloan, Frank, 1995. "Public Subsidies, Private Provision of Care, and Living Arrangements of the Elderly," Working Papers 95-22, Duke University, Department of Economics.
- Norton, Edward C., 2000. "Long-term care," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 17, pages 955-994 Elsevier.
- JOUSTEN, Alain & LIPSZYC, Barbara & MARCHAND, Maurice & PESTIEAU, Pierre, .
"Long-term care insurance and optimal taxation for altruistic children,"
CORE Discussion Papers RP
-1753, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Alain Jousten & Barbara Lipszyc & Maurice Marchand & Pierre Pestieau, 2005. "Long-term Care Insurance and Optimal Taxation for Altruistic Children," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 1-, March.
- Bisin, A. & Verdier, T., 1997.
"The Economics of Cultural Transmission and the Dynamics of Preferences,"
DELTA Working Papers
97-03, DELTA (Ecole normale supérieure).
- Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
- Jeffrey R. Brown & Amy Finkelstein, 2004. "Supply or Demand: Why is the Market for Long-Term Care Insurance So Small?," NBER Working Papers 10782, National Bureau of Economic Research, Inc.
- CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, .
"The economics of long-term care: a survey,"
CORE Discussion Papers RP
-2466, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.